An excess IRA contribution calculator compares your total traditional-plus-Roth contributions for the year with your allowed limit and shows the excess, the yearly 6% penalty, and the withdrawal or carry-forward needed to fix it. An excess contribution is the amount above the lesser of the annual IRS limit or your taxable compensation, including Roth contributions barred by income rules. For retirement savers, the result is a decision tool. It tells you whether to pull money out before the tax deadline or pay the yearly charge and correct it later.
Table of Contents
- What counts as an excess?
- What do you enter?
- What assumptions sit behind the math?
- How do you fix it on time?
- What if you miss the deadline?
What counts as an excess?
An excess arises when combined traditional-plus-Roth contributions exceed the lesser of the annual limit or compensation. It also arises when a Roth contribution violates MAGI phase-outs or when an improper rollover occurs.
The IRS caps combined contributions at $7,000 for 2025 and $7,500 for 2026, plus catch-up amounts for age 50-plus, according to the IRS COLA increases table. Low earners are limited to earnings, while joint filers use joint compensation for spousal IRAs. Example: a 40-year-old with $4,000 of pay who contributes $5,000 has a $1,000 excess even though the annual cap is higher.
What do you enter?
Enter figures for one tax year and one person. Use exact pay and contribution totals.
The calculator outputs excess amount, yearly 6% penalty, and corrective withdrawal or carry-forward needed. Check Roth eligibility separately if your income rose near the phase-out range.
- Tax year for the contribution
- Age 50-plus status for catch-up eligibility
- Taxable compensation for the year, or joint compensation for a spousal IRA
- Total traditional-plus-Roth contributions
- Roth MAGI eligibility
What assumptions sit behind the math?
The math treats traditional and Roth contributions as one shared limit. It compares that total with both the annual cap and your compensation, then uses the smaller allowance.
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It assumes all contributions belong to the tax year you select. It also assumes the 6% charge applies on the smaller of the remaining excess or the account value, as described by Vanguard in Vanguard's excess-contribution guide. If your account fell in value, the penalty base can fall with it.
How do you fix it on time?
Withdraw the excess plus attributable earnings by the return due date with extensions, generally April 15 or October 15 on extension. A timely corrective withdrawal avoids the 6% tax.
Withdrawn earnings count as taxable income for the year the excess contribution was made. They may face a 10% early-withdrawal additional tax if you are under age 59½, with relief for timely corrective distributions after Dec. 29, 2022.
What if you miss the deadline?
Late fixes still help, but the 6% tax applies for each prior year the excess remained. Options include withdrawing only the excess after the deadline while leaving earnings invested, or carrying the excess forward by under-contributing the next year, as explained by M1 in the M1 Help Center overcontribution guide.
Report the yearly charge on Form 5329 until fixed. Act before the next year-end to stop another 6% charge from accruing.
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